RE: Vlog 206: Binance Exchange Lists STEEM! + Poloniex disables STEEM wallets again + Steem price vs BTC + Dmania growth!
You can always convert 1 SBD into $1 USD worth of STEEM. This prevents the SBD from being worth less than one US dollar.
SBD has gone up because it's being bought on exchanges (for reason X) where it is traded and anyone can buy and sell it. This dictates the price. Currently $4,50.
The higher STEEM goes the higher the rewards will be. And because almost half of the reward is 1 on 1 in SBD more and more SBD's will be printed with a higher STEEM price.
The current supply is almost 8 million SBD (from 4.6 million 30 days ago). A huge increase already.
Given enough time I believe this rise in SBD's on the market will put pressure on the price and ultimately make it go back to $1 USD.
I don't know when or how long this will take. It could be a while.
SBD won't go below $1 USD because then users will convert it to $1USD worth of STEEM.
It is kind of crazy to have SBD so high. I think once SBD hits $1, this moment is going to be the peak of Steemit rewards for quite a while. SBD rewards right now are extremely generous, and the price of STEEM would have to get much much higher at $1 SBD to end up with rewards even close to what we're seeing now. Definitely glad to be active right now.
I think demand will push it higher. I am trying to investigate the creation of SBD and determine how and how many there are. If Steemians HODL their SBDs will the price rise more? SBD is needed for SMTs, so I want as many as I can get. Why should SBD stay at $1? When SBD is high, you can get more STEEM for your rewards, or you can invest your SBD in a SMT of your choice. Those projects will LOVE the high SBD price, which means more value in their SmartMediaToken.
allow me to experiment by sending one SBD